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RENEWABLE ENERGY consideration for greener element of the bonds. So, in our opinion, it would take some time before we see very exciting outcomes. SEBI has been taking various initiatives to improve corporate bonds’ market and has recently issued green bond guidelines as well. However, actual results would depend on active participation of market participants. Nevertheless, we are very optimistic that things are changing on the ground for better. ENERGETICA INDIA: What kind of role can climate bonds play in growth of India’s renewable energy industry? NAVEEN KHANDELWAL: Apart from good resource potential coupled with do-able projects’ pipeline and enabling policies, long term and low cost financing is pivotal for growth of renewable industry in our country. If we see falling tariff trajectory in last 12-18 months in solar bids, that has significant contribution of better cost and structure of financing. Therefore, Green/ Climate bonds are one of the much needed financing sources to propel & support the capacity addition and tariff improvements in the sector. ENERGETICA INDIA: Do you see other Indian corporates going in for green bond issuance? How big a market can India be for green bonds? NAVEEN KHANDELWAL: We see much heightened activity in the space in the coming years. Though our need for financing for renewable itself is very high, the fact that other areas/sectors like energy efficiency, water conservation, cleaner transport etc., could also issue green bonds, adds to the potential of the market to become wider and deeper. We see the market as multibillion dollars market very soon. ENERGETICA INDIA: What kind of MW goals does Hero Future Energies have for renewable energy projects in India? Is the company looking to invest in projects outside India also? NAVEEN KHANDELWAL: HFE intends to be in a leadership positon in the Industry quite soon and has set a target of 2.5 GW renewable energy projects in next 5 years. Though, main focus of the company shall be Indian market, we are in process of exploring other renewable markets as well and may be entering couple of them very soon Rahul Munjal, managing director of Hero Future Energies. “This kind of certification is an assurance on green use of proceeds and will thus attract global institutional investors to fund the growing requirements of this sector in the country.” Securities certified by the Climate Bonds Initiative are meant to provide additional assurance to investors about the climate benefit of their investments. The norms are backed by the Climate Bonds Standards board comprising of pre-eminent and independent investor entities, which collectively represent $34 trillion in assets under management. According to reports, $42.4 billion of green bonds were issued globally in 2015 and this is expected to cross $60 billion in 2016 The securities were validated by the Climate Bonds Initiative, an international, investorfocused, not-forprofit organization, which issues this certification under a robust framework for monitoring, reporting and assurance of conformance with the relevant standards 42 energetica INDIA · MAR | APR16


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